Frontier Communications 2008 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2008 Frontier Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 99

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99

Item 2. Properties
Our principal corporate offices are located in leased premises at 3 High Ridge Park, Stamford, Connecticut
06905.
Operations support offices are currently located in leased premises at 180 South Clinton Avenue,
Rochester, New York 14646 and at 100 CTE Drive, Dallas, Pennsylvania 18612. Call center support offices are
currently located in leased premises at 14450 Burnhaven Drive, Burnsville, Minnesota 55306 and 1398 South
Woodland Blvd., DeLand, Florida 32720. In addition, we lease and own space in our operating markets
throughout the United States.
Our telephone properties include: connecting lines between customers’ premises and the central offices;
central office switching equipment; fiber-optic and microwave radio facilities; buildings and land; and customer
premise equipment. The connecting lines, including aerial and underground cable, conduit, poles, wires and
microwave equipment, are located on public streets and highways or on privately owned land. We have
permission to use these lands pursuant to local governmental consent or lease, permit, franchise, easement or
other agreement.
Item 3. Legal Proceedings
Ronald A. Katz Technology Licensing LP, filed suit against us for patent infringement on June 8, 2007 in
the U.S. District Court for the District of Delaware. Katz Technology alleged that, by operating automated
telephone systems, including customer service systems, that allow our customers to utilize telephone calling
cards, order internet, DSL and dial-up services, and perform a variety of account related tasks such as billing
and payments, we had infringed 13 of Katz Technology’s patents and continued to infringe three of Katz
Technology’s patents. Katz Technology sought unspecified damages resulting from our alleged infringement, as
well as a permanent injunction enjoining us from continuing the alleged infringement. Katz Technology
subsequently filed a tag-along notice with the Judicial Panel on Multi-District Litigation, notifying them of this
action and its relatedness to In re Katz Interactive Dial Processing Patent Litigation (MDL No. 1816), pending
in the Central District of California before Judge R. Gary Klausner. The Judicial Panel on Multi-District
Litigation transferred the case to the Central District of California. This case was settled on November 20, 2008
for an amount that was not material to the Company. As part of the settlement, the Company agreed to pay for
a nonexclusive license under a comprehensive portfolio of patents that Katz Technology owns relating to
interactive voice applications. The case was dismissed, with prejudice, in December 2008.
We are party to various legal proceedings arising in the normal course of our business. The outcome of
individual matters is not predictable. However, we believe that the ultimate resolution of all such matters, after
considering insurance coverage, will not have a material adverse effect on our financial position, results of
operations, or our cash flows.
Item 4. Submission of Matters to a Vote of Security Holders
None in fourth quarter of 2008.
15
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES